A Note to ZKSwap Community: Why Withdrawal to Layer1 Wallet Is Required to Participate in ZKS Mining?
There are several reasons why withdrawal to the Layer1 wallet is required to participate in ZKS Mining.
First of all, after the smart contracts have been distributed, they distribute ZKS at a linear and uniform rate per second. Once smart contracts have been enacted, the process cannot be changed or suspended. Therefore, the first phase of PoL mining would request LP token withdrawals to the Ethereum network (Layer1) before users can participate in this activity.
Secondly, we understand there were questions regarding why deploying contracts directly in Layer2 isn’t an option. The answer to that question would be: the current Layer2 scaling solution based on ZK-Rollup does not support smart contracts. Some may argue that the Optimitc solution currently supports smart contracts on Layer2. However, according to our professional judgment, there are security risks in this process; and there is no finality in withdrawals from Layer2 to Layer1. Most importantly, it can take up to 7 days before withdrawals can be made with this solution.
How Do We Enhance User Experiences for Subsequent Liquidity Mining Activities?
We are actively working on optimizing the user experience for liquidity mining. We are implementing measures from two separate perspectives. Here are how they will work:
After the first phase of 14 days of liquidity mining, all subsequent liquidity mining activities of ZKSwap will be conducted at Layer2. As for the current problem of delayed withdrawals, ZKSwap will optimize the withdrawal process. At the moment we are taking measures to have the users Gas fee paid through ZKSwap team as an intermediary. In the future, we will add the option for users to pay the Gas fee directly to speed up the withdrawal process.
Withdrawals from Layer2 solutions can be slow. For instance, it takes up to 5 hrs to withdraw from zkSync and up to 7 DAYS from Optimistic. At ZKSwap, this process has been optimized and shortened to 20–40 mins when the Ethereum network is congestion-free.
Some may ask, what do I need the Layer2 for? To that question, the trade-off is a slower transaction to almost infinitely scalability. ZKSwap can handle 10 million transfers and Swap transactions every day, while Uniswap handles 100,000 Swap transactions per day with a bottleneck on scalability.
Regarding Funds Security
We’d like to apologize for the inconveniences the occasional bugs on the front end might have caused our users. However, please feel assured that the occasional malfunctions can not affect the safety of the user’s funds. All the user’s funds are stored safely in the smart contract, and no one else except the user can transact the funds. As a Layer2 leading explorer, ZKSwap team will quickly iterate the products and fix various small bugs.
Has the result of the liquidity mining so far met ZKSwap’s expectations?
YES! The ZKSwap has reached over $500 million TVL, nearly $400 million in liquidity, and $300 million in transactions, which are about 10% of Uniswap’s metrics. Considering that Uniswap was released 2 years ago with an obvious bottleneck in trading capacity, ZKSwap has indefinite potential considering we have been only released 20 days ago.